DHS awards $47.1M for 39 MH-60T aircraft engines, citing sole-source justification
Contract Overview
Contract Amount: $47,135,063 ($47.1M)
Contractor: General Electric Company
Awarding Agency: Department of Homeland Security
Start Date: 2026-01-26
End Date: 2028-12-31
Contract Duration: 1,070 days
Daily Burn Rate: $44.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF NEW THIRTY-NINE (39) T700-401D ENGINES TO BE UTILIZED ON THE MH-60T AIRCRAFT.
Place of Performance
Location: LYNN, ESSEX County, MASSACHUSETTS, 01905
Plain-Language Summary
Department of Homeland Security obligated $47.1 million to GENERAL ELECTRIC COMPANY for work described as: PROCUREMENT OF NEW THIRTY-NINE (39) T700-401D ENGINES TO BE UTILIZED ON THE MH-60T AIRCRAFT. Key points: 1. Value for money is difficult to assess due to sole-source award. 2. Competition dynamics are absent, raising concerns about price discovery. 3. Risk indicators include potential for overpayment and limited market leverage. 4. Performance context is tied to maintaining the MH-60T fleet's operational readiness. 5. Sector positioning is within aircraft engine manufacturing, a specialized field.
Value Assessment
Rating: questionable
The contract value of $47.1 million for 39 engines is substantial. Without competitive bidding, it's challenging to benchmark the value for money. The firm-fixed-price contract type offers some cost certainty, but the absence of competition means the government cannot be assured it secured the best possible price. Historical data on similar engine procurements for the MH-60T or comparable aircraft would be needed for a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, General Electric Company, was solicited. The justification for this approach is not detailed in the provided data but typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. The absence of competition limits the government's ability to explore pricing options and potentially achieve lower costs through a bidding process.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This can result in less efficient use of public funds.
Public Impact
The U.S. Coast Guard benefits directly through the acquisition of critical aircraft components. Services delivered include the supply of 39 T700-401D engines. Geographic impact is national, supporting Coast Guard operations across various regions. Workforce implications include supporting specialized manufacturing jobs in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price negotiation and potential savings.
- Lack of competition may reduce incentives for future cost efficiencies.
- Dependence on a single supplier can create supply chain vulnerabilities.
Positive Signals
- Firm-fixed-price contract provides cost certainty for this procurement.
- Procurement supports the operational readiness of essential Coast Guard aircraft.
- Engines are for a specific, likely critical, aircraft model (MH-60T).
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft engine manufacturing. The market for specialized military and government aircraft engines is often concentrated, with a few key players dominating. General Electric is a major manufacturer in this space. The value of this contract is significant within its niche, reflecting the high cost and complexity of advanced aviation components.
Small Business Impact
The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within General Electric's supply chain, but this is not explicitly detailed. The overall impact on the small business ecosystem for this specific award appears minimal based on the data.
Oversight & Accountability
Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. As a sole-source award, scrutiny may be higher to ensure the justification is sound and the pricing is fair. Transparency is limited by the non-competitive nature, but contract award details are usually publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- MH-60T Helicopter Procurement
- Aviation Engine Maintenance and Repair
- Department of Homeland Security Aircraft Fleet Modernization
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for inflated pricing due to lack of competition.
- Dependence on a single supplier for critical components.
Tags
defense, u.s.-coast-guard, general-electric-company, aircraft-engines, sole-source, firm-fixed-price, massachusetts, procurement, aviation-manufacturing, homeland-security, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $47.1 million to GENERAL ELECTRIC COMPANY. PROCUREMENT OF NEW THIRTY-NINE (39) T700-401D ENGINES TO BE UTILIZED ON THE MH-60T AIRCRAFT.
Who is the contractor on this award?
The obligated recipient is GENERAL ELECTRIC COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $47.1 million.
What is the period of performance?
Start: 2026-01-26. End: 2028-12-31.
What is the historical spending pattern for T700-401D engines for the MH-60T aircraft?
Historical spending data for T700-401D engines specifically for the MH-60T aircraft is not readily available in the provided snippet. However, the current award of $47.1 million for 39 engines suggests an average cost of approximately $1.2 million per engine. To understand historical patterns, one would need to examine past procurements by the U.S. Coast Guard or other branches utilizing the MH-60T, looking at quantities, unit prices, and contract types over time. Analyzing trends in engine costs, inflation adjustments, and any previous sole-source justifications would provide valuable context for assessing the current award's reasonableness.
What is General Electric Company's track record with the U.S. Coast Guard and similar aircraft engines?
General Electric Company (GE) is a major global manufacturer of aircraft engines, including the T700 series, which has a long history of use in various military and civilian applications. GE has a well-established relationship with government agencies, including the U.S. Coast Guard, likely supplying engines for multiple aircraft platforms over the years. Their track record typically involves extensive experience in engine design, production, and support. For the MH-60T, which is a variant of the Black Hawk helicopter, the T700 engine is a standard component. GE's performance is generally characterized by advanced technology and reliability, though like any large manufacturer, they may have faced specific program challenges or contract disputes in the past. A deeper dive would involve reviewing contract histories and performance evaluations specific to GE's engine sales to the Coast Guard.
How does the unit cost of these engines compare to market rates or similar government contracts?
The provided data does not allow for a direct comparison of the unit cost ($1.2 million per engine) to current market rates or similar government contracts. As this is a sole-source award to General Electric for a specific engine model (T700-401D) for the MH-60T aircraft, external benchmarks are difficult to establish without more information. Market rates can fluctuate based on demand, technological advancements, and supplier competition. Similar government contracts would need to be identified, considering factors like engine type, quantity, contract terms (e.g., firm-fixed-price vs. cost-plus), and the specific agency procuring them. The lack of competitive bidding inherently makes price benchmarking challenging.
What are the primary risks associated with this sole-source procurement of aircraft engines?
The primary risks associated with this sole-source procurement are financial and strategic. Financially, the government risks paying a premium price due to the absence of competition, potentially leading to inefficient use of taxpayer funds. Without competing bids, there's less pressure on the contractor to offer the lowest possible price. Strategically, relying on a single supplier for critical components like aircraft engines can create supply chain vulnerabilities. Any production issues, geopolitical events, or changes in the supplier's business strategy could impact the availability of these essential parts, potentially affecting the operational readiness of the MH-60T fleet. Furthermore, the lack of competition may reduce the incentive for the supplier to innovate or offer cost-saving improvements in the future.
What is the expected impact on the operational readiness of the MH-60T aircraft fleet?
The procurement of 39 new T700-401D engines is directly intended to enhance or maintain the operational readiness of the U.S. Coast Guard's MH-60T aircraft fleet. These engines are critical components, and having new units available ensures that aircraft can be kept in service, undergo necessary maintenance, and be deployed for missions without prolonged downtime due to engine issues. This acquisition suggests a commitment to sustaining the MH-60T platform, which is vital for various Coast Guard operations such as search and rescue, maritime law enforcement, and homeland security patrols. The delivery schedule extending to late 2028 indicates a phased replacement or support strategy for the existing engine inventory.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70Z03824RJ0000001
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1000 WESTERN AVE, LYNN, MA, 01905
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,135,063
Exercised Options: $47,135,063
Current Obligation: $47,135,063
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 70Z03824DJ0000013
IDV Type: IDC
Timeline
Start Date: 2026-01-26
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-04-07
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